Investment Banker Is a Person Working for Essay

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investment banker is a person working for an investment bank. Investment banks finance both public and private companies. They arrange for debt financing and they can help put together equity deals as well. A startup company will often seek partnerships with investment bankers in order to secure the financing needed to expand or to make acquisitions. Investment bankers do not normally work with companies that only have an idea.

The stock market is a secondary market where equities are traded. A company does not turn to the stock market per se to acquire capital. The company gets its equity financing from an investment banker, who may then place the shares on the stock market. The company only sees money from the issue of the stock -- the price on the stock market does not go to the company. Investors on the stock market, however, have votes on aspects of the company's activities and therefore can influence future decisions the company makes.

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Financial management is a broad term that relates to all aspects of the firm's finances. Financial management can relate to everything from balancing the books, finding ways to improve profitability, to managing the firm's capital structure and making capital budgeting decisions. Essentially anything to do with the firm's finances falls under the category of financial management.

Risk financing refers to financing that is intended to cover unexpected losses. There are many forms of risk financing including insurance, slush funds (reserves), lines of credit and hedges. For most startup companies, access to credit is a basic form of risk financing, and eventually the company may also keep reserves on hand for this purpose. Some forms of risk can be offset with….....

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"Investment Banker Is A Person Working For" (2011, October 17) Retrieved May 16, 2024, from
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"Investment Banker Is A Person Working For" 17 October 2011. Web.16 May. 2024. <
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Latest Chicago Format (16th edition)

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"Investment Banker Is A Person Working For", 17 October 2011, Accessed.16 May. 2024,
https://www.aceyourpaper.com/essays/investment-banker-person-working-52470